FirstHoldco Reaches N1.05trn Amidst Low Dividend Payment
FirstHoldco Plc’s market value reached N1.051 trillion as shareholders approved the payment of a 60 kobo dividend per share for 2024 – the lowest among its immediate rivals in the tier-1 banking category.
The bank shareholders approved 60 kobo per share at the annual general meeting last week on a stock price of N25.1, an amount that is the lowest offer compared with GTCO, Zenith Bank, and other rivals.
Its chairman, Femi Otedola, announced that personal investment in the holdings has reached N320 billion – a company that is worth N1.05 trillion in the stock market. First Holdco started the current year with weak earnings performance as profit slumped in Q1-2025.
Trading data from the Nigerian bourse revealed that the financial services company’s share price stopped at N25.1 in the equities market as more than 12.8 million units valued at N321.671 million exchanged hands.
Its share price fluctuated between N24.95 at the beginning of the week and closed at N25.1 on Friday, reflecting investors’ and market perception of the group’s earnings potential.
The Nigerian Exchange trading data revealed that FirstHoldco is priced at more than a 26% discount to its 52-week high of N34, which some analysts think the stock could achieve should its earnings performance improve. In the tier-1 category, First Holdco offered investors the lowest dividend payment, and at the same time, capital appreciation has been hugely unimpressive.
FirstHoldco Plc’s profit before tax declined by 20.4% year on year to N186.48 billion, while profit after tax settled 17.9% year on year lower after accounting for the income tax expense of N19.09 billion.
Earnings per share fell to N4.72 in Q1 from N5.76 12 months earlier, as the group’s earnings was under pressure amidst growing rivalry in the banking industry. In 2024, the financial services holdings company delivered a stellar performance, with profit after tax soaring 115.1% to N663.5 billion, driven by a 156.5% year-on-year surge in net interest income and a 27.8% rise in non-interest income.
Analysts said the group’s profitability was supported by earning assets expansion, driven by the accumulation of Nigerian treasury bills and government bonds given their attractive yields.
FirstHoldco shareholders approved 60 kobo as a dividend for 2024 at the annual general meeting—the worst payout compared with the best-in-class payment of N8.30 from GTCO. #FirstHoldco Reaches N1.05trn Amidst Low Dividend Payment LCCI Urges CBN to Indicate Cautious Future Rate Cuts
